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B63/100FDD 2025

Lil’ Angels Photography — Litigation & Risk

Other · FDD Items 3, 4 & 5

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Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
63 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
1
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Tennessee
State whose law governs disputes — relevant if you're not based there

What drove the 63/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-2.4% YoY) signals system contraction and potential market saturation
  2. 02MINORNo Item 19 financial disclosure (avg revenue/net income) prevents accurate ROI modeling and suggests weak performer metrics
  3. 03MINORUnusual royalty structure ($0.60 per 'equivalent unit') is vague and non-standard; unclear how this translates to actual franchisee costs
  4. 04MINORHigh franchise fee ($29,500) relative to low total investment range ($41-45K) indicates fee-heavy model with thin operating margins
  5. 05MINORSmall unit base (40 locations) limits brand recognition, marketing leverage, and support infrastructure stability
  6. 06MINOR10-year term is longer than industry standard (5-7 years typical), locking franchisees into potentially unfavorable economics

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.